Vitran (VTNC) 8-K Other Events

CONTACT:
Richard Gaetz, President/CEO Sean Washchuk, VP Finance/CFO Vitran Corporation Inc. 416/596-7664	Robert Rinderman Karin Oloffson Jaffoni & Collins Incorporated 212/835-8500 or VTNC@jcir.com

VITRAN REPORTS RECORD $0.38 DILUTED EPS IN 2005 Q2
ON 12 PERCENT REVENUE RISE

- Extends Earnings Increase Streak to 15 Consecutive Quarters -

TORONTO, ONTARIO (July 21, 2005) – Vitran Corporation Inc. (NASDAQ: VTNC, TSX: VTN), a North American transportation and logistics firm, today announced record quarterly financial results for the 2005 second quarter ended June 30, 2005 (all figures reported in $U.S.).

Vitran achieved net income of $4.8 million, or 0.38 per diluted share, on revenue of $105.1 million in the second quarter of 2005. In the comparable 2004 quarter, Vitran recorded net income of $4.4 million, or $0.34 per diluted share, on revenue of $93.9 million.

“The second quarter was another record for Vitran, with the Company achieving diluted earnings of $0.38 per share, yet perhaps the most important development during the quarter was the closing of our Chris Truck Line (CTL) acquisition on May 31, 2005. CTL further expands our U.S. freight coverage in the Midwestern and Southwestern U.S. by four new states and an additional 19 terminals. As previously stated, we expect CTL’s contribution to be accretive to Vitran’s 2005 full-year earnings results. Subsequent to the acquisition, we continue to maintain a strong financial position, with $12.7 million in cash and $29.8 million in available credit,” stated Vitran President and Chief Executive Officer Rick Gaetz.

During the six-month period ended June 30, 2005, Vitran recorded net income of $7.6 million, or $0.59 per diluted share, on revenue of $199.0 million. In the prior year period, the Company achieved net income of $6.0 million, or $0.47 per diluted share, on revenue of $181.1 million.

Segmented Results
Income from operations at Vitran’s LTL (less-than-truckload) segment rose 20 percent during the 2005 second quarter to $6.6 million, highlighted by a 12 percent revenue increase at the U.S. business unit and a seven percent rise in revenue from the Canadian business unit. The LTL segment’s consolidated OR (operating ratio) improved to 92.3, versus 92.7 in the year ago quarter. The U.S. LTL unit achieved an eight percent quarter over prior year quarter improvement in revenue per hundredweight and a five percent increase in revenue per shipment. The Canadian LTL operation also recorded solid Q2 results with a 12 percent increase in revenue per shipment and revenue per hundredweight jumping 10 percent.

Vitran’s Truckload segment achieved a 47 percent income from operations increase during the quarter, and lowered its OR to 92.0. The Logistics segment achieved 41 percent higher operating income, improving its OR to 93.6.

Following the close of the quarter, in early July, Vitran Logistics commenced operations of a 125,000 square foot dedicated distribution facility in Calgary on behalf a leading Canadian retail apparel and footwear company.

Guidance Update
Following the closure of the Chris Truck Line acquisition on May 31, 2005, management raised its 2005 diluted earnings per share guidance for the year to $1.35 to $1.47.

About Vitran Corporation Inc.
Vitran Corporation Inc. is a North American group of transportation companies offering
less-than-truckload, logistics, truckload, and freight brokerage services. To find out more about Vitran Corporation Inc. (NASDAQ:VTNC, TSX:VTN), visit the website atwww.vitran.com.

Statements in the press release regarding management’s future expectation, beliefs, goals, plans, or prospects constitute forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. For this purpose, any statements that are contained herein that are not statements or historical fact may be deemed to be forward-looking statements made pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Without limiting the foregoing, the words “believes”, “anticipates”, “plans” “intends”, “will”, “should”, ”expects”, “projects”, and similar expressions are intended to identify forward-looking statements. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual result, future circumstances or events to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, economic factors, demand for the Company’s services, fuel price fluctuations, the availability of employee drivers and independent contractors, risks associated with geographic expansion, capital requirements, claims exposure and insurance costs, competition, government regulation changes, environmental hazards and other risks detailed from time-to-time in the Company’s public disclosure documents or other
filing with the Canadian and United States securities commissions or other securities regulatory
bodies. The forward-looking statements are made as of the date hereof, and the Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

(tables follow)

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VITRAN CORPORATION INC.
CONSOLIDATED BALANCE SHEETS
(in thousands of United States dollars)

	June 30, 2005		Dec. 31, 2004
Assets
Current assets:	$	9,536	$	7,375
Marketable securities		3,193		33,087
Accounts receivable		46,999		40,124
Inventory, deposits and prepaid expenses		7,888		5,924
Future income tax assets		3,269		3,667
		70,885		90,177
Capital assets		53,500		37,563
Goodwill		61,901		45,304
	$	186,286	$	173,044
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable & accrued liabilities	$	39,377	$	33,377
Income and other taxes payable		2,315		2,399
Current portion of long-term debt		4,531		3,030
		46,223		38,806
Long-term debt		8,866		11,507
Future income tax liabilities		3,814		3,546
Shareholders’ equity:
Common shares		63,367		60,798
Contributed surplus		616		323
Retained earnings		61,964		54,972
Cumulative translation adjustment		1,436		3,092
		127,383		119,185
	$	186,286	$	173,044

(Statements of Income follows)

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VITRAN CORPORATION INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited) (in thousands of $U.S., except share and per share amounts)

	Three Months			Three Months			Six Months			Six Months
	Ended			Ended			Ended			Ended
	June 30, 2005			June 30, 2004			June 30, 2005			June 30, 2004
Revenues	$	105,050		$	93,931		$	198,991		$	181,077
Operating expenses		86,742			78,665			166,886			154,239
Selling, general and administrative
expenses		9,795			8,201			18,612			16,364
Other expense (income)		(17	)		(37	)		(27	)		(113	)
		96,520			86,829			185,471			170,490
Income from operations before
depreciation		8,530			7,102			13,520			10,587
Depreciation expense		1,517			1,232			2,848			2,540
Income from operations before undernoted		7,013			5,870			10,672			8,047
Interest expense, net		86			37			38			80
Income from operations before income taxes		6,927			5,833			10,634			7,967
Income taxes		2,131			1,446			3,084			1,931
Net income	$	4,796		$	4,387		$	7,550		$	6,036
Earnings per share:
Basic	$	0.39		$	0.36		$	0.61		$	0.50
Diluted	$	0.38		$	0.34		$	0.59		$	0.47
Weighted average number of shares
Basic		12,447,300			12,266,703			12,429,732			12,190,998
Diluted		12,778,285			12,771,784			12,767,134			12,716,553

(Statement of Cash Flows follows)

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VITRAN CORPORATION INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands of United States dollars)

	Three months			Three months			Six months			Six months
	Ended			Ended			Ended			Ended
	Jun. 30, 2005			Jun. 30, 2004			Jun. 30, 2005			Jun. 30, 2004
Cash provided by (used in):
Operations:
Net income	$	4,796		$	4,387		$	7,550		$	6,036
Items not involving cash from operations
Depreciation expense		1,517			1,232			2,848			2,540
Future income taxes		82			(465	)		647			(169	)
Stock based compensation expense		164			58			293			58
Gain on sale of capital assets		(17	)		(37	)		(27	)		(113	)
		6,542			5,175			11,311			8,352
Change in non-cash working capital components		254			3,448			(1,995	)		(6,741	)
		6,796			8,623			9,316			1,611
Investments:
Purchase of capital assets		(623	)		(1,443	)		(6,845	)		(3,078	)
Proceeds on sale of capital assets		24			79			38			214
Acquisition of subsidiary		(26,499	)		—			(26,499	)		—
Marketable securities		27,412			(146	)		28,781			(291	)
		314			(1,510	)		(4,525	)		(3,155	)
Financing:
Repayment of long-term debt		(570	)		(2,168	)		(1,140	)		(3,977	)
Issue of Common Shares upon exercise of
stock options		25			548			42			899
Repurchase of Common Shares		(164	)		—			(856	)		—
		(709	)		(1,620	)		(1,954	)		(3,078	)
Effect of translation adjustment on cash		(630	)		108			(676	)		166
Increase (decrease) in cash position		5,771			5,601			2,161			(4,456	)
Cash position, beginning of period		3,765			2,360			7,375			12,417
Cash position, end of period		9,536			7,961			9,536			7,961
Change in non-cash working capital components:
Accounts receivable		(386	)		(1,832	)		(3,747	)		(6,836	)
Inventory, deposits and prepaid expenses		(1,779	)		690			(1,455	)		684
Income and other taxes recoverable/payable		349			1,226			(412	)		(59	)
Accounts payable and accrued liabilities		2,070			3,364			3,619			(530	)
	$	254		$	3,448		$	(1,995	)	$	(6,741	)

(additional financial information follows)

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LTL Statistical Information — U.S. and CDN Divisions

For the quarter ended June 30, 2005

	U.S. LTL		Q. over Q.			CDN LTL		Q. over Q.
($U.S.)	Division		% Change		($CDN)	Division		% Change
Revenue (000’s)	$	50,017		12.3	Revenue (000's)	$	45,370		6.5
No. of Shipments		420,734		7.0	No. of Shipments		222,661		(5.0	)
Weight (000’s lbs)		579,630		3.6	Weight (000's lbs)		439,136		(3.1	)
Revenue per shipment	$	118.88		4.9	Revenue per shipment	$	203.76		12.1
Revenue per CWT	$	8.63		8.4	Revenue per CWT	$	10.33		9.9

For six months ended June 30,2005

	U.S. LTL		Yr. over Yr.			CDN LTL		Yr. over Yr.
($U.S.)	Division		% Change		($CDN)	Division		% Change
Revenue (000’s)	$	92,636		9.0	Revenue (000's)	$	86,458		5.3
No. of Shipments		791,160		5.5	No. of Shipments		424,227		(6.4	)
Weight (000’s lbs)		1,093,598		1.2	Weight (000's lbs)		826,605		(5.8	)
Revenue per shipment	$	117.09		3.3	Revenue per shipment	$	203.80		12.6
Revenue per CWT	$	8.47		7.8	Revenue per CWT	$	10.46		11.9

Supplementary Segmented Financial Information
(000’s of $U.S.)

For the quarter							For the quarter
ended June 30, 2005							ended June 30, 2004
	Revenue		Inc. from		OR%			Revenue		Inc. from		OR%
			Operations							Operations
LTL		86,429		6,625		92.3	LTL		75,958		5,533		92.7
LOG		9,615		615		93.6	LOG		8,768		436		95.0
TL		9,006		716		92.0	TL		9,205		487		94.7

For the six months ended June							For the six months
30, 2005							ended June 30, 2004
	Revenue		Inc. from		OR%			Revenue		Inc. from		OR%
			Operations							Operations
LTL		162,533		9,887		93.9	LTL		146,217		7,564		94.8
LOG		18,492		980		94.7	LOG		16,935		773		95.4
TL		17,966		1,458		91.9	TL		17,925		933		94.8

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